What is SPYWARE / MALWARE?
Spyware is a type of malware that is installed on computers and collects information about users without their knowledge. The presence of spyware is typically hidden from the user. Typically, spyware is secretly installed on the user's personal computer. Sometimes, however, spywares such as keyloggers are installed by the owner of a shared, corporate, or public computer on purpose in order to secretly monitor other users.

While the term spyware suggests software that secretly monitors the user's computing, the functions of spyware extend well beyond simple monitoring. Spyware programs can collect various types of personal information, such as Internet surfing habits and sites that have been visited, but can also interfere with user control of the computer in other ways, such as installing additional software and redirecting Web browser activity. Spyware is known to change computer settings, resulting in slow connection speeds, different home pages, and/or loss of Internet or functionality of other programs. In an attempt to increase the understanding of spyware, a more formal classification of its included software types is captured under the term privacy-invasive software... courtesy of wikipedia.org

What is a computer VIRUS?
A computer virus is a computer program that can copy itself and infect a computer. The term "virus" is also commonly but erroneously used to refer to other types of malware, adware, and spyware programs that do not have the reproductive ability. A true virus can only spread from one computer to another (in some form of executable code) when its host is taken to the target computer; for instance because a user sent it over a network or the Internet, or carried it on a removable medium such as a floppy disk, CD, DVD, or USB drive. Viruses can increase their chances of spreading to other computers by infecting files on a network file system or a file system that is accessed by another computer.

The term "computer virus" is sometimes used as a catch-all phrase to include all types of malware. Malware includes computer viruses, worms, trojans, most rootkits, spyware, dishonest adware, crimeware, and other malicious and unwanted software, including true viruses. Viruses are sometimes confused with computer worms and Trojan horses, which are technically different. A worm can exploit security vulnerabilities to spread itself to other computers without needing to be transferred as part of a host, and a Trojan horse is a program that appears harmless but has a hidden agenda. Worms and Trojans, like viruses, may cause harm to either a computer system's hosted data, functional performance, or networking throughput, when they are executed. Some viruses and other malware have symptoms noticeable to the computer user, but many are surreptitious or go unnoticed... courtesy of wikipedia.org